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Supply Chain Management, Technology, Procurement, Supply Chain Finance

The key learning objectives are as follows: to gain critical insights into e-commerce supply chains of fashion garments; understand the importance of digitization to manage the risks due to supply chain disruptions; evaluate the role of digitization to improve supply chain performance; understand the importance of supply chain finance in maintaining a healthy buyer–supplier relationship; and appreciate the role of supply chain digitization to transform a regional supply chain into a global supply chain.

This case highlights the challenges faced by fashion garments industry due to fragmented nature of their supply chains, where the manufacturing base was in the east and most of the consumers in the west. Digitization can create a bridge to integrate these supply chains to drive out their inefficiency, fragility and vulnerability to disruptions.

The case could be discussed in 90 min of an Operations Management, Supply Chain Management and Technology Management class at MBA or Executive MBA level.

Teaching notes are available for educators only.

CSS 9: Operations and Logistics.

The student will examine from a systemic perspective qualitative information from a company to propose improvements to its business model.

After working for more than 10 years with a global company, in January 2006 the Guadalajara-based jewelry SME, Divine Jewelry Co. (DJC), was facing liquidity problems, overstock and a debt from a bank loan, among others. The planned expansion of DJC, a family business founded in 1980, had resulted in just the opposite. Daniel, the owner and CEO of DJC, was determined to reverse the company's precarious situation as soon as possible. Some of the questions he asked himself centered on what actions he should take to pay off liabilities and try to survive in the industry his business had held a place in for 25 years. Daniel wondered whether, to pay off debts and have sufficient liquidity to have working capital and move forward, it would be enough to make efforts to recover those clients they had stopped serving, along with getting new ones. In addition, he thought it was necessary to formulate a plan to use the remaining proceeds from the sale of the property if they had to dispose of it. The case is about analyzing the strategic management of a company, specifically its business model, considering the context of its industry. The case also illustrates the problems that arise from focusing on serving a single client.

The case “Divine Jewelry Co: From Expansion to Survival” has been designed to be used by university students in initial management or strategic management courses on the following topics: Business modelsPorter's Five Forces ModelFormulation of strategies

Teaching notes are available for educators only.

CSS11: Strategy.